SOURCE: First China Pharmaceutical Group, Inc.

First China Pharmaceutical Group, Inc.

May 24, 2011 09:00 ET

First China Pharma Invests in Updates to Proprietary Order Fulfillment and Supply Chain Management Systems

KUNMING, CHINA--(Marketwire - May 24, 2011) - First China Pharmaceutical Group, Inc. (OTCBB: FCPG) ("First China" or the "Company") a rapidly growing and technologically advanced healthcare products distributor based in Yunnan, China is pleased to announce that as part of a recently completed round of capital financing, the Company has increased its investment efforts towards the implementation of a program of enhancements to its key online ordering and fulfillment system.

First China's integrated processing management system is considerably faster and more effective than traditional drug procurement procedures in China. By utilizing an advanced fulfillment system, the system frees workers from a number of repetitive manual operations at a variety of steps throughout the process. The system works across an internal network which includes automated interfaces with branch operations and incorporates account data from each department into a master dataset providing exhaustive reporting capabilities combined with detailed financial analysis.

The Company's online order fulfillment processing system consists of 2 parts: an e-commerce platform and internal information management system. The e-commerce platform is used as an interface for customers to visit and search out specific drug information and to communicate with the relevant customer service representative. The internal information management system is used for unified management of the purchase, inventory, sales, accounts receivable/payable, pricing, shipping and delivery of all products in the system.

First China originally developed its proprietary order fulfillment processing system as it was determined that an internal information management network combined with an internet e-commerce platform would enable customers to purchase drugs at a lower price by bypassing 2 traditional layers of local or regional distributors. The system also ensures that each order would be securely completed under stringent controls in order to eliminate false transactions or instances of other fraudulent activity.

The management and employees of First China are very proud of this exclusive order fulfillment processing system and are working diligently to increase overall efficiencies and productivity. Currently, few pharmaceutical companies have applied extensive IT technology practices into the forefront of their business operations and First China believes that the continued application of new technologies into both the supply chain and fulfillment management sides of its operations will result in ever lower costs and increased returns thereby ensuring the return on investment will rapidly produce significant quantifiable results in the marketplace.

Further details of the Company's business, finances, appointments and agreements can be found as part of the Company's continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission's ("SEC") EDGAR database.

About First China Pharmaceutical Group, Inc. (OTCBB: FCPG)
First China Pharmaceutical Group, Inc. aims to develop a high growth pharmaceutical distribution company generating significant revenue from the sale of healthcare products in China. As part of its business strategy, the Company has acquired the assets of Kun Ming Xin Yuan Tang Pharmacies Co. Ltd. (XYT), which includes a strategic advantage over its competitors as it is believed to be one of a limited number of pharmaceutical distribution companies in Yunnan Province that has obtained government approval to fulfill orders over the internet. First China Pharmaceutical Group plans to continue the rapid growth of the Company from its current position as a provider of approximately 5,000 drugs to more than 4,700 pharmacies, hospitals and clinics in China's Yunnan Province. For more information visit: www.firstchinapharma.com

Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, regulatory incentives, the development of new business opportunities, and projected costs, revenue, profits and results operations. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

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